Engie Brasil Energia (EGIE3) investor relations material

Executive summary

• Net operating revenue rose 13.1% year-over-year to R$3,409 million in Q1 2026, driven by higher energy sales, portfolio diversification, and expansion projects, including the Jaguara expansion and successful ANEEL bids for new transmission projects.

• Adjusted EBITDA increased 10.0% to R$2,244 million, while adjusted net income declined 4.1% to R$789 million compared to Q1 2025.

• Installed capacity expanded by 1.4 GW, led by new wind and solar projects.

• Maintained strong credit ratings, approved R$557.8 million in dividends for FY25, and continued presence in major sustainability indices for the 21st consecutive year.

• Operational uptime remained high across hydro (99.5%), wind (93.0%), and transmission (99.78%) assets.

Financial highlights

• Net operating revenue: R$3,409 million (+13.1% YoY); Adjusted EBITDA: R$2,244 million (+10.0% YoY); Adjusted net income: R$789 million (-4.1% YoY).

• Gross power generation reached 5,840 average MW (+8.4% YoY); energy sold was 4,904 average MW (+10.5% YoY).

• Average net sales price: R$216.76/MWh (+1.3% YoY).

• Net debt stood at R$24,984 million, with net debt/Adjusted EBITDA at 3.2x.

• Dividend distribution of R$557.8 million (R$0.4883/share) approved for FY25.

Outlook and guidance

• Ongoing investments in renewable generation and transmission projects, including Asa Branca, Graúna, and Assú Sol.

• Positive outlook for natural gas transportation with R$4.1 billion in planned investments over five years.

• Focus on gradual contract sales, portfolio resilience, and leveraging geographic and technological diversification to manage market volatility.

• Strong cash flow and prudent funding to support CAPEX plans through 2028.

• Monitoring El Niño effects and regulatory discussions on CVaR, with no significant price impact anticipated in the near term.